Marketing Mix and Strategies Analysis

The assignment delves into the analysis of the marketing mix, utilizing the 7Ps framework. It examines various marketing strategies and concepts such as international industrial marketing, advertising, sustainable marketing, relationship marketing, creative arts marketing, strategic marketing planning, brand awareness, and the influence of marketing-mix efforts on brand equity. The assignment also incorporates real-world examples to illustrate these concepts, including Walmart's business model and the application of the 7Ps in the wellness industry.

INTRODUCTION TO
MARKETING

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
Market research on grocery market of UK by different tools..........................................................3
Task 2............................................................................................................................................12
Segments which affects the growth of Lidl................................................................................12
TASK 3 .........................................................................................................................................15
Marketing mix model and relevant strategies ...........................................................................15
RECOMMENDATIONS...............................................................................................................19
CONCLUSION..............................................................................................................................20

INTRODUCTION
Marketing is a management process through which company distributes their goods and
services to target customers and market. It is related to various activities, set of institutions and
process for creating, communicating, delivering and exchanging offerings that serve value to
customer, clients, stake holders, etc. It helps to satisfy needs and requirements of customers
(Wilson, 2012). It is essential for marketing department to manage their marketing strategies
effectively so that they can reach to their customers as well as fulfill their demands on time. By
using appropriate distribution channel, company can provide their goods and service to their
customers on time. Marketers can also apply different marketing concept and marketing mix to
make their strategies more productive. Lidl is leading discounted supermarket chain based in
German. Company was founded in 1930 with its headquarters in Neckarsulm, Germany. It has
been operating in more than 10,000 stores especially across Europe and USA. This company is
biggest competitor of Aldi. This assignment will mainly focus on expanding Lidl business in UK
retail market to compete their rival teams. They provide low cost and affordable goods to their
customers. This is the reason Lidl has a strong reputation in market with such a large number of
loyal and satisfied customers. Appropriate research on retail industries is done to provide critical
information about rivals to Lidl. Models like PESTEL, SWOT, Ansoff Matrix, Boston
Consulting Group Matrix, etc are used under this project to analyze opportunities, threat,
weakness, strengths, political, economical, social, and legal and other information factors that
can influence Lidl business and growth. Research on UK population has been given which can
provide maximum benefit to Lidl Company and encourages their sales and profits. Different
marketing model and marketing mix are used to provide relevant approaches to marketing
strategies are covered under this assignment.
TASK 1
Market research on grocery market of UK by different tools
Following are some tools which are used to identify growth opportunities of Lidl.

SWOT ANALYSIS: It is a strategic tool which is used to identify internal factors such
as strengths and weakness of company as well as external factors like opportunities and threats.
These factors help company to find out core strengths of company to deal with other competitors
in market and stay ahead of their rivals whereas what are the weak areas which company should
pay attention to improve those areas, so that they can come up in effective manner (Tomczak,
Reinecke and Kuss, 2018). What are the different opportunities which a firm can get and some
threats while competing in market? This helps in better comparison of internal and external
factors with business objectives and goals and gives precise idea about favorable and
unfavorable situations. Before formulating any strategy in relation to business expansion,
growth, new product launch, etc, managers use SWOT Analysis to find out the chances of profit
and loss to company.
Retail market of United Kingdom is a very large platform where numerous competitors
are present and this main strategy is to attract as many customers towards their products and
service as possible. Retail companies are using SWOT analysis to identify better opportunities
and threats of their company form other competitors. It is really a tough task to manage
everything and achieve success. With the help of this analytical tool, various strengths,
weaknesses, threats and opportunities of retail market of UK can be identified who can influence
sales and marketing of Lidl. Following is the SWOT analysis:
STRENGTH (Internal factor of organization)
It is an internal factor which is very crucial for Lidl to identify. As it is one of the leading
supermarkets, they have to continuously upgrade their strengths areas to retain their position. To
expand their business in markets of United Kingdom, they have to make whole lot of planning to
make the expansion successful (McDaniel and Gates, 2013). As Lidl has a strong reputation in
market, it can be easy to start their new business in UK. They have to focus on target customers
and market areas where they can get maximum profits and sales. This company has strong online
presence and is available online. This is a greater strength of Lidl to enhance their market online
as maximum number of people buy products online and digital marketing has a great scope in
present as well as in future.
WEAKNESS (Internal factor of organization)

If Lidl wants to achieve maximum growth in retail market, then they have to focus on
weak areas also because these factors can prevent company to achieve desired success. Managers
and superiors should pay attention to their weakness and try to improve it as soon as possible. If
they are proficient and talented in their functioning then they can their followers in effective
manner. Weakness of Lidl Company is that they are relatively small as compared to other brands
like Aldi, TESCO, etc. They have not expanded their business globally and are limited to United
Kingdom and USA. They should try to open up their stores globally so that they can give tough
competition to other rivals companies. As they have large number of store in UK but they lack
sufficient employee workforce to attend customers and answer their problems at the stores. This
decreases customer satisfaction and tend to prefer other rival companies for better assistance.
Above were some weaknesses, which the company needs to focus to achieve desired success.
OPPORTUNITIES (External factor of organization)
It is necessary for companies to overcome all their weaknesses to become a successful
leader. As retail sector is ever growing market, so company has great opportunities to expand
their business. They can shift their business to countries which have growing economies.
Managers can formulate effective market strategies to grow their business and acquire large
market share in retail market.
As they have strong hold on online marketing, they make it more effective and customer
friendly by doing some modification and making unique products available in their website.
With the help of Search Engine Optimization, they can register their websites with famous
search engines (Smith, 2012). This will customers to reach the company within a shit time
period. Organization can focus on great opportunities lying in front of them and start their
actions in that direction of getting success.
THREAT (External factor of organization)
There are challenges which company has to face on daily basis. Lidl has a growing
supermarket chain and many competitors are already present in the market which have well
established business and have a large market share. This can impact on growth of the company.
Many changes can occur in government rules and regulation, policies, guidelines related to retail
industry. If any global brands expand their company international, then it might pose threat to

Lidl and this will become more difficult to expand their business. Manager can identify what
factors can be dangerous for them and will prevent them from growing their business. In that
case they need to analyze all those factors and formulate best strategies to encounter all their
threats.
Retail sector involves much threat and is unpredictable. Even a single change in shopping
habit of customer can cause major threats to retailers. It is necessary to keep company updated
with regular changes in market and modify their plans according to that.
Above was the SWOT Analysis which represents strength and weakness of company and
some opportunities and threats which firm has in the market place (Gibbs and Knapp, 2012).
Below is another tool to analyze external environment and its influence on Lidl enterprise.
PESTEL Analysis
This analysis of retail industry provides company with relevant information about factor
which can influence the growth and success of industry.
Political factor: It mainly includes laws and regulation of country which affect revenues
and profitability. Retail industry is ever growing sector and have been concerned with
employment laws which are set by government. Political stability is necessary for business as
their disruption can lead to supply chain and sales problem. Over some years, organizations
which are dealing in UK retail industry have to face policies and regulation. It has been noticed
that, companies which have strong hold in market, tend to dominant and exploit employees due
to larger market share (Dávila, 2012). The government has then responded back by
implementing some laws against employee’s safety and competitiveness of industry. Some
political factors which greatly influence retail industries are as follows:
 Tax policies.
 Government regulations and policies.
 Corruption level.
 Government stability and instability.

 Political action committees.
 Completion regulations.
 Government involvements in trade union and agreements.
 Trade control.
Economic factor: UK supermarkets are greatly influenced by economic conditions of the
country. A company has to consider all economic factors while making their strategies as a
single change can lead to huge loss or profit to them. There is a continuous swing in external
environment which leads to instability of retail industry. Various factors like inflation rates,
unemployment policies, and monetary policies greatly influence economic condition of Lidl.
Some of key economic factors are as follows:
 Inflation rate.
 Interest rate.
 Growth rate.
 Availability of credit.
 Exchange rate.
 Unemployment trend.
 Price fluctuations.
 Stock market trends.
 Gross Domestic Products trend.
Social factor: Buying patterns of UK customers pose great impact on Lidl Company. As
they manufacture goods which have affordable prices, consumer prefers them over costly retail
supermarkets. This increase their profits and sales (Fill and Turnbull, 2016). But sometimes
customers can have the perception of bad quality as products are available at very low cost, so

they might not prefer them. Some of critical social factors which influence growth of company
are as follow:
 Population size and growth rate.
 Birth rates.
 Death rates.
 Immigration and emigrations rates.
 Life expenditure rates.
 Wealth distribution.
 Social classes.
 Per capita income.
 Buying habits.
 Ethical concerns.
 Cultural norms and behaviors.
Technological factor: There has been a great advancement in technology in past decades. It
is crucial for retail industries to have recent equipment and technology to compete in the market.
They can execute innovative ideas by taking help of equipment and produce unique products.
This also increases quality and productivity of goods and services. Following are some
technological factors which are necessary for the company:
 Automation.
 Level of innovation.
 Technological awareness and incentives.
 Access to new technology.
 Research and development activity.

 Internet infrastructure.
 Life cycle of technology.
Environmental: Various factors have influenced the supermarket industry. For example,
weather conditions greatly effects growth of crops, fruits, vegetable, etc or possibly destroy them
(Anda and Temmen, 2014). This sometime led to shortage of supply and increases the prices in
supermarket. Company also produces so much of carbon discharge which harms nature, so they
should minimize and manage their waste and effluents. Some crucial environmental factors
which affect business activities of company are as mentioned below:
 Weather.
 Climate.
 Environmental policies.
 Climate change.
 Pressure of NGO’s.
 Air and water policies.
 Natural disasters.
 Recycling standards.
 Support for renewable energy.
Legal: These factors are very important for retail industry. There are many laws
which effect the functioning of companies. Legal scenario of UK is really complex and
retailer has to be very cautious as any violation can lead to huge fine. Some of the legal
factors are mentioned below:
 Discrimination laws.
 Employment laws.
 Consumer protection laws.

 Copyright and patent laws.
 Health and safety laws.
 Consumer protection laws.
 Data protection laws.
Illustration 1: PESTEL Analysis
BOSTON CONSULTING GROUP MATRIX
BCG is a global management consulting firm and is world’s largest adviser on business
strategy. They connect with clients which are from various sectors like public, private, non-
profit and give them advice about their opportunities in market. They help companies to achieve
sustainable competitive advantage, build more and capable firms and maximize their
productivity and profitability (Christopher, Payne and Ballantyne, 2013). BCG matrix helps
organization to achieve desired success by planning effective long term strategies by reviewing
its portfolio of products where to invest, to discontinue or develop products. The matrix is
mainly divided into four sections and is known as, Star, Question mark, Cash cow and Dog.
These elements are described below:

 Star: In this those companies or products are included which earn huge profits and are
most popular in market. They ensure high sales and maximum revenue as they have
strong market share and high growth rate. If a company is in this stage, then they have to
invest huge amount of funds to maintain their position. Aldi is one such company who
has high sales and is highly powerful in retail industry.
 Question mark: This includes those company or products which are in growing stage
and require huge investment to get stability. They have low market share that is why they
earn less revenue. Question mark is also referred to problem child and these companies
have the potential to gain market share and become a star. Lidl comes under this stage as
it is in growing state and have high capacity to become a star.
 Cash cow: These companies have high growth rate and generate more cash then they
consume. They help company to become market leader.
 Dog: These companies have low market share and low growth rate. They neither generate
cash nor do they consume cash.
ANSOFF MATRIX
This tool represents corporate growth strategies and present potential markets and
products. Company uses this tool to grow their business in new and existing market with their
new and old products (Turnbull, and Valla, 2013). They provide four different growth strategies
and are given below:
Market penetration: In this company try to achieve success through existing products in
their current market and aim to increase its market share.
Market development: Firm focuses on achieving growth by targeting its existing products to
new market.
Product development: Company develops new products for existing market segments.
Diversification: Firm expand their business by developing new products for new markets.

Task 2
Segments which affects growth of Lidl.
Market segmentation is one of the most efficient and effective tool for business to fulfill
needs and requirements of target group. It is so because market segment make it easy for firm to
customize their market strategies and campaigns by to focus on capturing the attention of
consumers in most appropriate and cost effective manner (Belch and et al, 2014). It leads to
specific planning and thus gives out better outcomes. Segmentation is done by dividing
population into various sections and sub sections on the basis of certain characteristics such as
such as age, gender, income, place, occupation, usage, lifestyle etc and then selecting target
audience for business. IT ensures that business draft better products according to needs of
segment there are certain way factors on the basis of which segmentation is carried out in order
to analyze and search out most ideal set of requirements and behavior of selected customer
group. Key point to be emphasized upon while grouping segments is that they should be
homogeneous i.e. there needs to be some similarity among the people of sections that can
capitalize by firm. Also as every individual is unique marketer need to ensure that people
belonging to same segment should have identical reactions in similar way as other individuals of
same segment have for stimulus. Mentioned below are some of the prominent types of market
segmentation:-
Socio- demographic factor: - Socio- demographic segmentation is one of the most
significant marketing divisions since information is easily available and drastically affects
buying behavior of customers. This segmentation divides market on the basis of customer
personal characteristics such as age, family size, gender, income, religion, race, occupation,
nationality, etc. The marketing department of almost every industry like beauty products,
mobile phones, automobiles etc. conduct this segmentation as customer’s buying behavior is
largely influenced by these factors.
Behavioral Factor: - It is the practice of dividing consumer’s group on basis of attributes
like usage, loyalty, preference, knowledge, choices, purchase patterns and decision making. It
can be utilized in number of ways as in case segmentation is based on awareness an enterprise
might send influence customers behavior through customized ad campaign or in case it is based

on occasion a firm can target it price sensitive at time of special events like graduation, festivals
and so on (Martin and Schouten, 2011). The knowledge of product and its usage impacts buying
decision of an individual. Audience can be divided into segments like one who already knows
about product, ex-users, potential users, people who are currently using he products, people
using it for the first time etc. By gaining knowledge of preferences and requirements of each
kind of individual company has to formulate policies and procedure so as to attract more and
retain most of its consumers by being more relevant and producing messaging that will induce
the desired target market to purchase.
Psychographic Factor: - It is far less realistic as compared to demographic as attributes
used are less tangible. Psychographic Segmentation divides customers group on the basis of their
lifestyle, attitude and personality. It works on the premise that consumers purchasing behavior is
largely influenced by their personality traits and lifestyle which they follow. It defines
personality as combination of different characteristics that form an individual’s distinct character
and includes his attitude, habits, traits, temperament, etc. Lifestyle on the other hand depicts how
a person lives his life. Psychographic information is often gathered via extensive surveys that ask
individuals about their interests, opinion, activities, attitudes, values, and lifestyles. One of the
most well-known psychographic surveys is Value, Attitude, and Lifestyle Survey. Based on their
responses, consumers are segregate into following categories, each characterized by certain
buying behaviors.
 Innovators- They are active customers who are most receptive to new ideas and
knowledge and technology. They are change leaders who are conscious about self
esteem, successful and image (Peck and et al, 2013). Their purchase reflects
sophistication and they prefer upscale, niche products and services.
 Thinkers- They are mature, satisfied reflective people who value knowledge,
responsibility and order. They are motivated by ideals and are conservative, practical
consumers. Their preference while making a purchase is durability, functionality, and value
in the products.
 Achievers- They have goal-oriented and they value compromise, predictability, and
stability over risk, intimacy, and self-discovery. Because of their hectic schedule they prefer

time saving devices and have a taste established, prestige products and services that exhibit
success to their peers..
Experiences - They are motivated by self-expression and one of their prominent features is that
they quickly become enthusiastic about new possibilities but are equally quick to calm down
(Hill and O'Sullivan, 2012). They look for variety and excitement and spend a high portion of
their income on fashion, entertainment, and socializing and having “cool” stuff.
 Believers- Believers are conservative, conventional people with practical approach and
they follow traditional routines which revolve around family community, and social or
religious organizations to which they belong. As consumers, they choose familiar products
and established brands. They are loyal consumers.
 Strivers: They are fun loving people. They are more concerned about opinions and
approvals of other people and are motivated towards their achievement. They mostly favor
stylish products that follow purchase of people with greater material wealth.
 Makers: They are the one who express themselves and experience world by working on
it- building a house, raising children, buying a car, etc. they are more practical and have
constructive skills ad value. They have traditional lifestyles, prefer to live with family and
have little interest in what lies outside that context.
 Survivors: They have narrowly focuses lives and feel comfortable with familiar things
and are concerned with safety and security.
Lidl being one of the world’s leading discounted grocery retailers give prominent emphasis on
target segmentation to find out needs of its target customers and meet them by designing most
effective marketing mix strategies (Gilligan and Wilson, 2012). Based upon the market
segmentation mentioned below are some specific details about Lidl-
Target Audience - Lidl target audience are middle market consumers the
budgeting families and local residents.
Strategy - The market strategy portrays it as a reasonable brand which gives
quality products at low price so as to sell more and more goods and attract large audience
to get higher profits.

Characteristics- Lidl sell more own branded products having high quality at
affordable prices. It stocks limited but high class brands / foods so at to reduce selecting
time of the consumers.
TASK 3
Marketing mix model and relevant strategies
Research in marketing helps an organization to make potent planning and strategies for
their business activities. Marketing research requires deep intellectual ability to understand
concept and theories and apply them in performing business research for organization. Lidl can
use different marketing model and apply them in their business activities to gain competitive
advantage in their business activities. Some of the model enterprise can use in enhancing market
researchers are as follows
Product description- It is a type of modeling technique where description about product
are underlines. This involves providing all necessary details about product to the clients to create
transparency in business activities (Huang and Sarigöllü, 2014). As company is dealing in retail
stores it is necessary for them to provide basic information about product to generate trust factors
among customers. As customers in geographical boundaries have different living standard, so
price description will help them to choose best product at suitable price
Brand Image- It means they popularity of a company and the values it possesses in
market in given business market. Serving people with defined value will help company to
explore new geographical boundaries (Kim and Hyun, 2011). Brand image of any organization
can be defined under brand Keller’s brand equity model that provide a framework defining
relationship and resonance with customers, their responses, demand of services and products.
Creation of better relationship by satisfying customer’s wishes with ethical approach will help
Lidl to create good brand valued in different business market. The company has already satisfied
people with good quality retail product in all over Europe and wish to expand more to new
geographical region in future run.
Pricing Objective Strategy – A pricing objective strategy is included in pricing process
that has to be made by proper planning of finance, marketing, customer expectation of prices and

product goal. This strategy is defined under 4 broad divisions for generating more revenue from
products. Lidl use this price strategy according to potential of people and demand of market in
different geographical region (Pomering, Noble and Johnson, 2011). 4 elements of pricing
strategy are
 Profit oriented – Company must determine prices at an affordable range so that they can
fetch more people towards their business.
 Volume oriented – Prices are set according to selling of required volume of products. A
company does not want their manufactured item remain unsold or spilt.
 Image oriented- Prices of product should be on brand image that an organization
possesses. Price diffract can be seen between organization depending on their brand
image.
 Price stabilization – It is necessary because there are many people in market who are
prices sensitive so any changes in pricing strategy can hamper productivity of
organization (Mintz and Currim, 2013).
Retailing and distribution objectives and strategies- Distribution strategy of any
organization goes parallel to 7Ps strategy of organization, so it becomes more important to have
a better supply changing management for distribution of product in market (Enache, 2011). Lidl
must make sure that they place right product at right place by analyzing demand of that product
in given business market. So for distribution of product effectively company has to follow a
defined process so to fetch more revenue from business market. The distribution start with
manufacturer who desires to sell their product, then it goes to wholesaler, responsible of
distribution of product to desired retailer then it ultimately distributed to customers.
Integrated marketing communications objectives strategies- it is an effective tool for
an organization to communicate with people and promote their brand value in different business
market. Lidl use different communication medium to reach out to people in different business
market. They can also make their product presentable in business market through different
communication practices (Fan and et al, 2015). There is several advantage of using integrated
marketing techniques. Some of them are as follows

 Development of brand awareness
 To increase demand of their product among customers
 It can also help in changing customer attitude and belief
 Increase purchase action among the customers
 Helps in customer retention
 Enhance customer traffic in their retail stores across different geographical area.
 Increase brand image in different market.
 Enhance sales practices
 Helps in reinforcing purchasing decisions of people
Lidl can use all these factors in their business activities to enhance their approach in
business market and gain more revenue.
7P’s Marketing Mix- Marketing mix for an enterprise helps in enhancing brand offering
and product (Malhotra, 2011). It will help Lidl to establish their business in marketing place by
following different strategies according to marketing mix. Elements of marketing mix are as
follows-
 Product – It is an element on which organization perform sales practices in business
market. As Lidl is working in retail sector it is dealing with variety of products to
perform their sales activity. Company must design product according to the demand of
customers in different market.
 Place – It is important to determine place of performing marketing activity. Lidl is
growing their business in many part of Europe by analyzing demand of type of product
and helps in placing them effectively (Armstrong and et al, 2015).
 Price- Strategies related to prices can be made by proper evaluation of business market.
Enterprise must plan to provide high standard product at reasonable price so that it can
able to fetch more customer towards their retail store.
 Promotion – It is an effective tool helps in informing about company's business activity
in different market. Effective use of different medium for promotion of products will
help organization to expand their business activity in different competitive market.

 People – For doing business an organization must estimate and analyses demand of
customer in that marketing place so that they can easily make products according to need
and want of customers.
 Process – It involves type of approach a company will follow in their business activity.
For performing retail activity a systematic opting for right process will help Lidl to
increase their business activity in market.
 Physical evidences – For having smooth flow of business transparency must be there that
will help generating faith and belief among their customers towards the organization
(Sheth and Sisodia, 2015).
Illustration 2: 7P’s of marketing mix
RECOMMENDATIONS
As above mentioned, Lidl is a growing company which has to establish a stable market in
UK as well as in other countries also. For that they need to identify many things before going for
expansion. Some of the analysis had been already described above in this assignment such as
SWOT Analysis where various strengths, weakness, opportunities and threats can affect growth

and success of organization. The company needs to focus on these factors to make effective
plans.
Another analysis tools is PESTEL Analysis where company identifies some critical areas
such as political, economical, legal, political, environmental and legal which help company to
get accurate idea about what is going on in external environment and what should be inculcated
in organization to make their functioning more effective. Other tools are BCG and Ansoff matrix
which help company to analyze about target market and growth opportunities and formulate
strategies according to that.
Company should focus on areas which can give them maximum profits and growth, here
they can get maximum customers and popularly. This helps them with developing marketing
plans more efficiently and proficiently. Manager of Lidl should do their research on
demographic, psycho graphic, behavioral, social segments to get precise information about
people which can affect their growth and success. They should use effective marketing strategies
to design products and services which should be based on recent trends and have the capacity to
fulfill the needs and desires of target people. If company becomes successful in satisfying wants
of people, they can easily achieve success and can gain appropriate lead in competitive market.
Managers of LIDL need to formulate their expansion strategies to ensure successful
business in future. For this they can apply 7P’s of marketing mix in their plans to make it more
precise and accurate and achieve desired growth in market. It is important to decide their
distribution and supply chain activities to ensure timely availability of products to market. For
developing a new product, managers have to design products and organize their production
plans. Manufactured products should have capacity to fulfill and satisfy consumer needs. Better
sales of product, more are the profits to company which lead to establishment of strong brand
image in market. Lidl can perform proper research and analysis to execute their best plans and
expand their business globally.
CONCLUSION
Form the above assignment, it can be concluded that Lidl is a fast growing supermarket
chain in UK and other countries also. It requires several tools and techniques to expand their

business in competitive market successfully. Some of the tools are SWOT Analysis, Ansoff
matrix, Boston Consulting Group, PESTEL Analysis, etc. these techniques help them to focus
their energy and capital towards right direction which give them profits in long run. They can
prepare their business plans with the help of expert’s advice, certain marketing tools, research
and analysis of external environment. These all things provide company with essential
information, which can be useful to make effective strategies and desired steps towards
successful journey of company. They need to be very careful as many competitors are already
present in the market and operate according to that. They should try to implement innovative
ideas in their operation which can give them easy lead form other competitors. This also helps
them to attract many customers towards their products and service and leads to more sales of
company. Lidl can improve their functioning and develop their marketing department effective
and strong which can perform in appropriate directions.

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